NEW YORK — As further evidence that the venture
capital industry has not been immune from the public market turmoil
through the second and third quarters, Venture Economics today
announced its preliminary quarterly Private Equity Performance Index
(PEPI) results for Q3 2000. For the third consecutive quarter, returns
to limited partner investments in venture capital funds fell and
posted a 6.4% return for the quarter ending 9/30/2000. Compared to the
dizzying heights of 1999, when the fourth quarter posted a 59.4%
return in a year where the entire industry had recorded a phenomenal
165% return, it is easy to see the impact that the Internet fallout in
publicly-traded investments of high technology stocks has had on
venture portfolios. This performance downturn began in the spring of
2000 after a hard dose of reality in the Christmas season of 1999 for
on-line retailers, many of whom had venture capital financing. The
downward trend continued through 9/30/2000.
SEATTLE — The Boeing Co. announced today that it
has made a $5 million investment in Alexander Hutton Venture Partners, a venture capital
fund focused on technology companies in the Northwest.
The investment, the company’s first in a Seattle-based fund, is part of Boeing’s strategy to
expand its R&D and innovation capabilities by participating in leading venture capital
funds around the world that specialize in developing technologies of interest to the
SAN FRANCISCO — OffRoad Capital, the online private
securities and technology firm, today announced the completion of a $6 million financing,
coupled with a restructuring to reduce expenses.
“The successful completion of this transaction in a difficult financing climate reflects the
value investors see in OffRoad’s technology platform and our unique ability to enable the
online offering, pricing, ordering and allocation of all types of private securities to all types
of investors,” said Stephen D. Pelletier, OffRoad founder and executive chairman.
Mayfield Fund, a premier venture capital fund, led the financing, which was also supported
by new and previous investors in OffRoad. Concurrent with the financing, OffRoad reduced
headcount by 41 positions or about one-third as part of an overall program of expense
In other changes, John A. Forlines III and David Weir, who joined OffRoad from J.P. Morgan
as co-presidents last year, were named co-CEOs of the firm.
NEW YORK — Capital IQ, Inc., the information and technology solution
provider for investment bankers, today announced significant strategic
investments from LabMorgan, the e-finance unit of J.P. Morgan Chase (NYSE:
JPM) and Dresdner Kleinwort Wasserstein’s (DrKW) Online Markets Division.
These commitments mark the close of Capital IQ’s more than $30 million round
of strategic investment, which includes previous strategic investments from
Credit Suisse First Boston, FleetBoston Financial, Merrill Lynch and Wit
PITTSBURGH — CardiacAssist Inc., an emerging medical device
company that manufactures and markets revolutionary minimally invasive heart assist
devices, announced today that it has received $33 million in equity funding from a number
of leading venture capital funds. The company has developed a unique device, the
TandemHeart(TM), which enables cardiologists to provide circulatory support to patients
with failing hearts in the cath lab without surgery. The product has received CE Marking late
last year and has been launched commercially in Europe. In the United States,
TandemHeart(TM) is undergoing phase I clinical evaluation under FDA supervision. New Medical Technologies of Basel,
Switzerland, acted as lead investor in the transaction. Other investors include Advent Venture Partners (U.K.), Technolife- Rothschild (France)
and Switzerland based funds including Credit Suisse Private Equity, Aventic Partners (an
affiliate of UBS Warburg), Equity4Life, Banc Julius Baer and SGA. A strategic U.S. investor
was Mayo Medical Ventures (the venture fund of the Mayo Clinic).
SCOTTSDALE, AZ — Koch Ventures Group, the venture
capital and risk financing arm of Koch Industries, Inc., today announced the promotion of
three new officers.
Ray Gary has been promoted to president, Koch Ventures, Inc., leading Koch’s venture
capital investment activity. David Duncan has become vice president and CFO of the
group, responsible for corporate finance, strategy and portfolio management for all Koch
Ventures Group businesses. And Joel Telpner is now vice president and chief legal
counsel for the group.
LOS ANGELES — Advanced Communications
Technologies Inc. (OTCBB:ADVC) (ACT-USA) today announced that it had entered into an
agreement with Dr. Gil Amelio and Beneventure Capital, LLC to acquire 100% of the stock
in Beneventure Capital, LLC.
The agreement provides for the acquisition of the assets and interests of Beneventure in
exchange for shares of stock in Advanced Communications Technologies Inc. The value of
Beneventure’s assets will be determined by an independent valuation.
Beneventure is a leading venture capital firm specializing in securing interests in
companies involved in communications, semiconductor, Internet services and the financial
services sectors, and currently retains interests in a portfolio of 11 companies.
NEW YORK — IntraLinks Inc., the new digital
workspace, today announced that it has received $40 million in new equity
capital. Led by Rho Ventures and investment affiliates of Soros Private
Equity Partners LLC, this round of funding also included investments from
Emigrant Capital Corporation and Lago Ventures. Previous investors Reuters,
Patricof & Company Ventures, Inc, and Euclid Partners also participated in
this round of financing. Funds raised will be used for sales and marketing,
technology development, and international expansion.
MUNICH, GERMANY — Since the beginning of the year, Munich-based venture capital specialist wellington partners has added four new companies to its portfolio of top-flight IT start-ups: Springtoys (Finland), Esperanto (Netherlands) and two German companies, GTEN and Swyx. “In our investments,” stressed wellington founder Rolf Christof Dienst, “we are continuing to focus on far-reaching innovations in the field of information and communication technology. We want to help build successful and sustainable companies and we are not primarily interested in a fast exit.” With this policy, wellington partners is taking a contrarian stance to the general wisdom that technology start-ups are moving in a difficult environment.
CAMBRIDGE, MA — Integral Inc., an international consulting firm
that helps companies create wealth through growth strategies, announced today the
launch of its Corporate Venturing Practice-created in response to growing client demand
and demonstrated expertise in this area. The goal of this practice is to help companies
seize innovation opportunities and build growth through new corporate business
initiatives-even in the midst of today’s economic uncertainty.
ANN ARBOR, MI — Nephros Therapeutics Inc.
announced today that it has completed a $4.7 million round of private equity funding to
advance its work on cell-based therapies for renal failure, including a Renal Assist Device
to replace key functions of the Kidney.
Financing was provided by BD Ventures, L.L.C., a venture capital fund sponsored by BD
(Becton, Dickinson and Company), Portage Venture Partners, (Northfield, Illinois) and
Seaflower Ventures (Waltham, MA). The investor group has the option to invest up to an
additional $1 million increasing the round to a total of $5.7 million.